Kohat Cement Company new cement plant would cost Rs 25 billion

The Company top management has updated about its upcoming 8-10k tpd green field project. The management informed that the total cost of project would be Rs25bn, of which Rs10bn will be financed through internally generated equity while the rest Rs15bn will be financed through debt.

The company has not availed the TERF facility but is trying to avail LTFF for the expansion.

The plant is expected to commence COD in FY24.

Along with this, company is also working on optimization of pyro process of line-3 which will reduce fuel & power cost. The total cost of project is Rs1.2bn and will be financed through combination of debt and equity. However, the company has kept other projects including cement grinding mill and coal fired boilers on hold due to injection of equity in the greenfield project.

Currently plant is running at 70% capacity utilization.

Courtesy – AHCML Research

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